Analysts have Announced a Record Increase in Food Prices in Russia
OREANDA-NEWS. The analytical service «FinExpertiza» provided a report according to which food prices in Russia increased by 7% in January 2021 compared to the same period last year. This figure was a record since 2016. According to analysts, the growth of food prices is outpacing inflation.
Sugar has risen in price especially strongly during the year — by 64%, and sunflower oil is in the second place. It has increased in price by 26%. The Russian authorities introduced price regulation for these products in 2020. Cereals and legumes also rose significantly (by 20.8%), chicken eggs (18%), vegetables and fruits (16.3%) and pasta (12.9%).
In the country as a whole, there was a negative socio-economic trend. Inflation and price increases were lower in affluent areas of the country. High price increases, by contrast, were found in poor regions with low-income residents forced to spend the bulk of their money on food. The leaders in price growth were Dagestan, the Saratov region and Adygea.
Low-income groups used anti-crisis payments from the state to increase consumption, which affected the growth of food prices. Due to the state regulation of prices for some products, the market situation can be greatly destabilized. So the market can expect an imbalance of supply and demand, a shortage and price spikes, the analysts added. Their words are quoted by «Lenta».